Oct 26 2012
IMX Resources Limited has commenced the next phase of metallurgical testwork on core samples from the Snaefell prospect to produce a coarse high grade magnetite concentrate and evaluate whether it is suitable as a direct sinter feed product for Asian steel makers.
Snaefell, which forms part of the broader Mt Woods Magnetite Project, is located 12 km from the Company's Cairn Hill Mining Operation near Coober Pedy in South Australia. Snaefell has an Inferred Mineral Resource1 of 569Mt @ 27.1% Fe (using 18% Fe cut-off) and remains open at depth.
The previous testwork program indicated that the Snaefell magnetite concentrate, which has a target grind size of 180-200 microns2, has the potential to produce a premium quality concentrate suitable as an iron-making sinter plant feed. The primary objective of the new round of testwork is confirmation that a Snaefell magnetite concentrate can be directly sintered thereby removing the costly requirement for pelletisation as a preliminary step in steel making. If confirmed, the concentrate could attract a premium price to traditional magnetite concentrates because of these cost savings. This would also broaden the potential market for these concentrates to both South Korean and Japanese steel producers.
The testwork program involves production of a coarse magnetic concentrate in Perth, simulating the process flowsheet developed during the previous testwork. This magnetic concentrate will then be tested for direct-sintering as part of various blends with traditional direct-sinter feed materials at the China Iron and Steel Research Institute in Beijing, China.
The results of this round of testwork are expected to advance the process of attracting a partner to develop the Mt Woods Magnetite Project, and enable IMX Resources to extract value from its investment in the project.